Chancellor Osbourne cancelled
The move will mean an annual saving of £75 a year for the average motorist, and £250 a year for small businesses with a van. The Chancellor said the freeze is a tax boost to keep Britain on the move.
However, other areas of the budget have proved worrisome for many in the fleet industry.
Fuel duty freeze not enough to keep costs down
The Freight Transport Association (FTA) believes Osbourne has missed the opportunity to boost the UK economy, by not reducing fuel duty by 3 pence per
James Hookham, FTA managing director of policy and communications, said: “A further freeze of duties is
With the FTA
Further concerns point towards company car tax and
By 2021, plans will be put in place to transition the UK to cleaner and ultra-low
That means capital allowances for business cars will be reduced from 130g/km to 110g/km of CO2. From April 2018, the FYA will reduce from 75g/km to 50g/km.
The Chancellor also announced he will continue to base company car tax levels on CO2 emissions, and will continue to refocus incentives for the cleanest cars beyond 2020-21.
BVRLA chief executive Gerry Keaney said: “While it may have been touted as pro enterprise and pro-infrastructure, this Budget gives the rental and leasing industry plenty of cause for concern.”
“It’s pleasing to see the Chancellor extend 100% first-year allowances for businesses purchasing ultra-low emission cars for a further three years until 2021, though yet again he has ignored our calls to make this benefit available for companies that lease their cars. This unfairly discriminates against SMEs who rely on lease arrangements to access new low-emission cars, and instead
The state of salary sacrifice schemes remains clouded
The budget also states limitations to be
The government claims it intends to maintain the attractiveness of such schemes, but it’s likely any changes will have an impact on the estimated £4,500 HMRC receives in tax revenue every year from each salary sacrifice car.
ACFO chairman John Pryor said: “Many public and private sector
“ACFO would advise companies to be aware of the government’s review announcement when investigating the introduction of salary sacrifice arrangements.”
It’s not all bad news. The government has once again announced its support
The budget also announced their commitment to establish a £15 million ‘connected corridor’ between London and Dover which will allow vehicles to communicate wirelessly.
Trials of truck
It’s clear the Chancellor’s Budget will have a direct impact on those operating in the fleet industry. The full extent of which is currently jaded until further announcements are made.